SEC v. Ripple: Crypto a Commodity or Security?

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• The SEC is currently awaiting a decision from Judge Analisa Torres of the Southern District Court of New York in the Securities and Exchange Commission (SEC) versus Ripple Corporation case.
• The charge alleges that Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide.
• This case goes beyond the survival of Ripple and XRP; it lays predicate for the SEC to charge many other cryptos as securities.

The SEC vs Ripple Corporation Case

The Securities and Exchange Commission (SEC) is awaiting a decision from Judge Analisa Torres of the Southern District Court of New York on its case against Ripple Corporation. In December 2020, the SEC charged that “Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide.” It further alleged that company executives Christian Larsen and Bradley Garlinghouse “also effected personal unregistered sales of XRP totaling approximately $600 million.”

Implications For Crypto Industry

This case has implications beyond just Ripple and XRP; it could set precedent for how other cryptos are regulated by the SEC. If found guilty, it would mean many other cryptos could be classified as securities instead of commodities by regulators. Currently, trading commodities like sugar, wheat oil or gold is governed under Commodity Futures Trading Commission (CFTC), while crypto is not yet recognized either way by most agencies around world.

Factors Influencing Crypto Prices

The price of crypto depends on buyer versus seller sentiment driven by multiple factors such as token news, but also macroeconomic factors like inflation and employment which also influence other commodity prices. Generally speaking when there is excess liquidity, quantitative easing or money overprinting along with low-interest rates then crypto prices tend to go up whereas high inflation combined with quantitative tightening or higher interest rates may cause crypto prices to fall .

Cointelegraph Innovation Circle

The Cointelegraph Innovation Circle brings blockchain technology experts together who can transform future innovations within crypto industry framework regulations including those related to this current case – whether cryptos should be classified as security or commodity?

Conclusion

The outcome of this case could have far-reaching consequences for how cryptocurrencies are regulated going forward; whether they will be treated more like commodities than securities remains to be seen but this ruling should provide some clarity on this matter either way when it comes down finally from Judge Analisa Torres soon after her deliberation process ends..